How To Create A Fake Credit Report

What a Credit Report Is and Why It Is Important

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In the United States, a credit report plays a large role in the financial decisions an individual will be able to make in the future. Here is an overview that looks at what exactly a credit report is, who the three major companies are that offer credit reports, why it is important and how to go about getting a credit report check for free.

What a Credit Report is and Who Has it

So, what exactly is a credit report? Simply put, a credit report consists of an individual's credit history that they may have with banks, credit card companies, collection agencies and governments.

There are three main credit reporting agencies that have these records: Equifax, Experian and TransUnion. Equifax alone has collected information on over 800 million individual consumers and over 88 million businesses from around the world. These companies have created a credit score based on each consumer's credit history. What this means for the individual is that before an individual can take out any type of loan, the lender will contact Equifax, for example, request a credit report of the potential lender and make their decision on whether to give the loan to the borrower based on what score they have received in their report.

What a Good Score is

The report makes it easy for lenders to quickly decide on whether or not giving the loan or credit card is in their favor. The three main agencies base their scores on the following:

10% credit mix (credit cards, retail, mortgage loans)
10% new credit
15% length of credit history account
30% amounts owed
35% payment history (number of times late payments are made)

When potential loaners check the credit report, they will look for scores which are ideally 750 or higher. A good score though is 700 to 749 and a poor score is anything around 600 or below.

Where to Find the Report

According to the Federal Trade Commission (FTC), everyone is "... entitled to one free copy of their credit report every 12 months from each of the three nationwide credit reporting companies." To attain the report, simply order online from www.annualcreditreport.com which is the only authorized website for free credit reports.

How to Read the Report

Once you have received the free credit report score online, make sure to look over all the personal details such as Social Security Number (SSN), telephone number and address. Double check that all the reported accounts are accurate and are actually owned by you. Mistakes can sometimes appear if, for example, you added another person as an authorized user of a credit card and their name appears on the report rather than your own. Also, report to the bureaus any inaccurate accounts that appear to be late or delinquent but are in fact not.

Why Credit Reports Are Important

It is extremely important to regularly review your Experian, TransUnion or Equifax free credit report. As mentioned previously, having a good credit is extremely important. If the lenders see a low score, chances of receiving the loan are greatly reduced as they will see the borrower as a high risk. This does not only affect the probability of receiving the loan but can also influence the amount of interest that will be required if the loan is given.

If you are looking for employment and applying for a position that requires handling the company's money, the potential employer will most likely want to review your credit report as well. The same goes for any type of home mortgage or even loans for renting that you may be in need of.